Business News Round Up (14/11/2023)
UK business confidence falls to lowest in 2023 despite easing inflation
UK business confidence tumbled to its lowest level this year in October despite inflation expectations easing. It was the second successive fall thanks to concerns about the cost of living and elevated interest rates. According to the latest quarterly UK Business Outlook from Accenture and S&P Global, the net balance of firms expecting activity to increase over the next 12 months slid to 37% in October, down from 40% in June and 43% in February. Worries about the effects of interest rate hikes on consumer spending and borrowing saw optimism in the UK service sector fall to 36%. Hospitality businesses felt the brunt of this impact, standing out as the sole sub-sector that did not report a positive sentiment. Manufacturers reported a modest increase in optimism — up to +44% — with notable positivity from the transport and food and drink sectors.
£7.5m awarded to support businesses to thrive and innovate in Greater Manchester
Businesses of all sizes in Greater Manchester will benefit from tailored support to help them grow, innovate, and move into new markets thanks to a multi-million-pound investment over the next two years. Greater Manchester Combined Authority (GMCA) has awarded GM Business Growth Hub £7.5m from the UK Shared Prosperity Fund to deliver a comprehensive offer of support to businesses in the city-region. Connecting businesses and start-ups, no matter their size or specialism, with new opportunities and support tailored to their ambitions. As well as a dedicated contact centre offering instant advice around day-to-day queries such as registering for VAT and skills development, GM Business Growth Hub – which forms part of The Growth Company – will also offer businesses practical and specialised business support based on their needs and ambitions in areas such as accessing finance, innovation, leadership and skills development, decarbonisation and many more.
Wage growth slows as cost of living pressures ease
Wage growth has eased back, according to official figures that also show no change to the UK’s jobless rate despite signs of weakening activity. Average wages excluding bonuses in the three months to the end of September were 7.7% higher than a year earlier. That was down from the 7.8% growth registered last month. The total annual growth rate is affected by the Civil Service one-off payments made in July and August 2023, the Office for National Statistics said. While the fall in the pace of wage rises is slight, the widening gap between wage growth and price rises suggests the squeeze on living costs may be starting to ease. It is likely to be welcomed by the Bank of England which has highlighted wage growth as a crucial indicator of the persistence of domestic inflation.
https://dailybusinessgroup.co.uk/2023/11/wage-growth-slows-as-cost-of-living-pressures-ease/
Climate tech hub secures £3 million investment to support expansion into Greater Manchester
Sustainable Ventures, a climate tech hub to support green economy innovators, has secured a £3 million investment that will enable expansion into Greater Manchester in 2024. Funding has been led by Barclays Sustainable Impact Capital, part of the bank’s commitment to invest £500 million in equity capital into tech start-ups exploring ways to address and adapt to climate change. The investment will enable London-based Sustainable Ventures to access talent and provide additional professional services to climate innovators across the UK, with Manchester set to be first new location supported. The hub will link local stakeholders into growing regional clusters for the green economy and provide bespoke support for climate tech specialists and entrepreneurs. Greater Manchester is the UK’s fastest growing UK tech hub outside of London and boasts a £5 billion digital tech ecosystem that is home to over 10,000 start-up and scale-up companies.